According to the Australian Transport Council guidelines, the recommended parameter for greenhouse gases are based on a value of carbon that remains at $10 per tonne in real terms through time. However, scenario analysis prepared in 2008 by the Australian Treasury finds that the estimated carbon price rises in real terms over time, rising to between $80-$130 per tonne in 2040 (in 2005 real dollars) depending on the scenario used.
Infrastructure Australia is of the view that the price of carbon will indeed rise in real terms over time, and therefore all submissions should include a price of carbon which rises in real terms, utilising the lower series of the Australian Treasury projections in the core benefit-cost ratio (BCR) estimate, with sensitivity testing utilising the upper series of the projections.